Dangote Refinery in Nigeria prepares $1.6 billion IPO
Dangote Refinery in Lagos, Nigeria, has completed the approval of documents for a $1.6 billion initial public offering. The IPO is scheduled to launch on September 14, Premium Times Nigeria reports.
The document-signing ceremony in Lagos was led by the company’s owner, Aliko Dangote. The refinery’s current capacity is 700,000 barrels per day, and under the pan-African offering, the company seeks to raise about 2.2 trillion naira from investors.
Offering terms
Nigeria’s Securities and Exchange Commission last week approved the offering of 4.1 billion shares at a price of 525 naira, or $0.40, per share. The minimum subscription will be 10 ordinary shares with a total value of 5,250 naira. Lagos-based Vetiva Advisory Services Limited is the capital-raising coordinator.
More current news is available on the UA.News Telegram channel Telegram.
In July, Dangote Refinery conducted a private placement, raising $2.5 billion from institutional investors and high-net-worth individuals. Demand for the offering exceeded the placement volume by 270%.
Expansion and listing
The public offering values the refinery at nearly $50 billion. The company plans to use the raised funds to double the facility’s capacity to 1.4 million barrels per day. The refinery is located on a 6,180-acre site on the outskirts of Lagos.
The shares are planned to be listed on the Nigerian Exchange later this year. The company is also working on a listing on the Johannesburg Stock Exchange and is considering share quotations in Egypt, Kenya, Ghana, and Rwanda. According to the publication, listing on the local exchange could increase its market capitalization by more than a third.
